Profit improvement exceeds expectations, and the company's performance is expected to continue to improve.
In the first three quarters of 2022, the company achieved operating income of 822 million yuan, an increase of 50.81% over the same period last year, and a net profit of 87 million yuan, an increase of 79.83% over the same period last year. Of this total, 2022Q3 achieved an operating income of 281 million yuan, an increase of 21.4% over the same period last year, a decrease of 4% over the previous month, and a net profit of 40 million yuan, an increase of 66.7% over the previous month. During the 2022Q3 period, the expense rate was 5.3%, an increase of 1.1% over the previous month, of which the management expense rate was 2.6%, an increase of 1.4% over the previous month. The main reason is that the company has increased its management staff to cope with business development. With the arrival of Q4 traditional photovoltaic season, the company's performance is expected to continue to improve. Therefore, we raise the company's profit forecast. It is estimated that the 2022-2024 net profit of the company will be 146x360,000,000 (formerly 1.42x283100,395), and EPS will be 2.284.68pm (formerly 2.21x42x6.18), and the corresponding share price PE will be 46.4, 22.6x14.8 times, maintaining the "buy".
Rating.
With the decrease in the price of raw materials, the proportion of shipments of split module products has increased, and the company's profitability has improved significantly. In terms of profitability, the company's 2022Q3 gross profit margin is 22.5%, 7.34% higher than the previous month, 14.30% net profit, and 5.36% higher than the previous month. The main reason for the improvement of the company's profitability is that, first, the junction box capacity has been cleared due to the low profit point experienced by the industry in 2021, and there is a periodic shortage in the junction box link with the rapid growth of demand in the photovoltaic industry in 2022. It is expected that the price of the company's junction box products has been raised in Q3; second, the price of the company's main raw materials copper, plastic particles and diodes has entered a downward channel since Q3. The third is the increase in the proportion of shipments of split module junction boxes with higher gross margins. The superposition of three factors makes the company achieve a significant improvement in 2022Q3 profitability. At the same time, through the use of capital market financing channels, the company actively carries out capacity construction and grabs market share.
Open up an energy storage connector track to seize the opportunity in the blue sea market
The company actively makes use of its advantages in photovoltaic connectors to actively develop the second growth curve to enter the field of energy storage business. According to the company announcement, the company has participated in the formulation of two industry standards for energy storage connectors, and has obtained a number of authorized patents. Related products have completed certification, small batch production, and formed sales. Under the high growth expectation of the global energy storage market, the company is expected to be the first to benefit from the preemptive layout of the blue ocean market.
Risk hint: industry demand is not as expected and new product development is not as expected.